Field test on the IASB’s ED/2021/3 Disclosure Requirements in IFRS Standards – A Pilot Approach

On 21st May 2021, EFRAG called for participation in the field-testing on the IASB’s ED/2021/3 Disclosure Requirements in IFRS Standards – A Pilot Approach.

EFRAG, in close coordination with the IASB, will conduct field-testing of the IASB proposals included in the Exposure Draft ED/2021/3 Disclosure Requirements in IFRS Standards – A Pilot Approach, which have been published in March 2021 (see our prior news item).

The purpose of the field-testing is to identify potential implementation and application concerns of the proposed disclosures in IFRS 13 Fair Value Measurement and IAS 19 Employee Benefits, to determine whether there is a need for additional guidance and estimate the effort required to implement and apply the proposals.

Participants will be asked to:

• prepare mock disclosures by applying the proposals in the Exposure Draft on employee benefits and/or fair value measurement;
• complete a questionnaire covering the mock disclosures, including questions about the application of specific aspects of the proposals; and
• a conversation to inquire about the experience applying the proposals in the Exposure Draft, practical issues encountered in preparing the information in the mock disclosures and any ideas for resolving these issues

Participants can choose whether they would like to apply the proposals for IFRS 13 Fair Value Measurement and/or IAS 19 Employee Benefits.

All companies are welcome to participate (including SME), specifically those with significant employee benefits or items carried at fair value, including real estate and financial institutions such as banks and insurers.

Confirmations of participation should ideally be received before the end of June.

The intention is to finalise any follow-up discussions on the field work by end of August 2021. However, EFRAG is flexible in obtaining input through outreaches, recognising the availability and individual circumstances of the stakeholders and is open to discuss any specific arrangement and timeline.

In the end, EFRAG will prepare feedback statements from the workshops and publish them on its website. Any information released publicly about the results of the fieldwork will not allow readers to identify data about individual participants.